Tag Archives: #Jumbo

5 Farmers Markets You Should Visit In Our Region

As America’s Farm-to-Fork Capital, Sacramento definitely has it’s share of incredible Farmer’s Markets to visit. With delicious foods, colorful displays of fresh produce, aromatic florals and unique hand-crafted goods it can be difficult to choose which market to visit. Well, we’ve eliminated some of the guess work by providing you with our selection for the top five Farmer’s Markets in the Sacramento area.

  1. Sacramento Central Farmer’s Market

Conveniently located beneath the Freeway of 8th and W this market is open Sundays year-round from 8 am till noon.  With over 125 vendors it is one of the largest in the area and offers an incredible array of fresh produce, fish, meats, oils, nuts and other unique delicacies you won’t find anywhere else! You’ll also want to check out the coffee and pastry area – a great way to kickstart the day as you make the rounds.  Be sure to get there early because it’s typically packed by 9 am.  8th and W Streets, Sacramento www.california-grown.com

  1. Davis Farmers’ Market

This local market is open Saturday’s year – round between 8am and 1 pm, and then adds “Picnic in the Park” every Wednesday evening from mid-March through mid-October.  In addition to the wide-variety of certified organic produce, meats, wine, local eggs and the “Picnic in the Park” features live music, a beer and wine garden and international food fair.  Bring the kids along too, they can enjoy the bicycle-powered carousel, face-painting and bounce houses! Central Park. 4th and C Streets, Davis www.davisfarmersmarket.org

  1. Historic Folsom Farmer’s Market

Although not as large as some of the others on our list, the Folsom Farmer’s Market is not to be missed. With it’s quaint location, around the historic railroad turntable and public plaza in Historic Folsom, you can easily spend a fun Saturday touring the unique shops and restaurants in the area. The market itself features fresh local produce, eggs, baked-goods and several unique hand-crafted goods. The best part is the friendly atmosphere and vibe set by the live music. The market is open Saturdays, year-round from 8 am – 1pm. 915 Sutter St. Folsom. www.historicfolsom.org

  1. Midtown Sacramento Farmers’ Market

Grab your bike and ride over to the Midtown Sacramento Farmer’s Market and take advantage of their free bike valet service. While there you will enjoy a bounty of prepared foods, teas, coffees as well as numerous locally-grown produce stands, flowers and crafts. Located under of beautiful canopy of big shady trees, the market offers other activities such as cooking demonstrations and child-friendly farm tours. Visit year-round on Saturdays between 8 am and 1 pm. 20th Street between K and J www.midtownfarmersmarketsac.com

  1. El Dorado County Certified Farmers Market Association

This is not just one market but five!  The El Dorado County Certified Farmers’ Market Association (EDCCFMA) is incorporated as a non-profit, participates in the California Certified Farmers’ Markets and is dedicated to the farmers in El Dorado County. To that end, EDCCFMA has created five markets in El Dorado County…Friday and Saturday in Placerville, Sunday in El Dorado Hills at Town Center, Tuesday in South Lake Tahoe, Wednesday in Cameron Park.  At all those markets local, just picked produce is sold by the farmers which is nutritionally superior unlike store produce which was picked days ago and miles away.  At the same time, you can meet the farmers and learn about their dedication to growing and harvesting, their farming practices and special preparation suggestions…and therefore a friendship is formed.  You will learn what will be harvested soon and make plans and swap recipes with your community neighbors.  http://eldoradofarmersmarket.com/

Call Me Today 916-722-0395, Email Me Today kathleen@wcmtg.com or visit my website www.kathleenbeck.com   Let’s start you down the road to home ownership now!

 

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When was the Last Time you Checked your Credit?

credit score

When was the last time you checked your credit? Was it the last time you bought a car? The last time you refinanced or purchased your home? Or years ago, or so far back you’re not even sure?

Well, just like getting your teeth cleaned at the dentist, getting your oil changed, and filing your taxes, you should be checking your credit report carefully at regular periods.

However, studies show that 42% of Americans don’t regularly check their credit!

So, unless you’re apply for new credit accounts, or trying to improve your score for a big purchase like a home loan, or see evidence of identity theft, do you really need to go through the trouble of looking up your FICO?

Why should you check your credit regularly?

Your credit may have errors:

Did you know that your credit report may have errors? A study by the Federal Trade Commission (FTC) found that more than 1 in 5 credit reports (21%) contain errors.  Even worse, 5% of consumers suffer through errors so serious that they are continuously overcharged for credit card debts, auto loans, insurance policies and other payments.

Over time, these errors may cause serious damage – not only to your credit score, but to your finances and by extension to your life. In fact, credit report errors may result in a lower credit score and a higher interest rate on a mortgage, a turn down on a zero-interest credit card, lower loan limits on an auto or student loan, higher insurance rates, and in some cases even cost you that dream job.

The good news is that 79% of consumers who disputed credit report errors were successful in removing them

Hacks, breaches, and ID theft:

I’m sure you’ve heard the news about the massive data breach at Equifax, one of the big three credit reporting bureaus. It’s expected that up to 143 million Americans – or just about half of all adults in the U.S.- had their data or sensitive financial information stolen.

It’s quite possible that your information was stolen, too, and that very well could mean ID theft or financial fraud is coming your way.

Consider that:

  • Last year, there were an estimated 15.4 million victims of ID theft and fraud, costing the victims more than $16 billion!
  • A new study by Bankrate.com found that at least 41 million Americans have already been a victim of ID theft, about one in six adults. Additionally, 50% know someone who has had their ID stolen.
  • About 50% of all victims realize that their identity has been stolen within three months.
  • But about 15% don’t learn of their ID theft for four years or longer!
  • 64% of ID theft improprieties and fraud involve stolen credit card accounts.
  • 34% involve misuses of bank accounts and debit cards.

If a cybercriminal gets a hold of your data, passwords, or even basic information like name, address, birthdate, etc., it’s easy for them to sell your info on the dark web or open new credit card or bank accounts. But all of this can be identified and taken care of very early, before the damage is done, just by checking your credit regularly.

Here is when you should check your credit:

In advance of a loan or big purchase

If you plan on refinancing your home, buying a home with a mortgage, applying for a new credit card, business loan, or student loans, etc. you should check your credit scores at least a few months ahead of time. Not only will you be able to research what rates and terms available to you based on your credit scores this practice will help you to become a smarter consumer, and hopefully you’ll be able to identify and update any issues on your credit report ahead of time.

Annually

Just like paying your taxes, your annual doctor’s visit, or spring cleaning, it’s recommended that you give your credit report a thorough review once a year.  Each of the three major credit reporting agencies (Experian and TransUnion and Equifax), will give you your credit report for free once a year. If you stagger your requests for those reports every four months with a different bureau, you’ll have a full survey of your activity over time.  Remember that these bureaus act independently, and so a credit issue may not be discovered for many months if the credit issue is not on the credit bureau you pull.

Monthly

These days, wise consumers conduct at least a quick once-over of their credit every single month. The best way to do this is by looking at your credit card statement, which should provide an updated credit score. While these scores may not be consistent across all reports and bureaus, they will give you a good indicator of general trends and what’s going on with your credit.

Here is where you can check your credit and all three scores without the credit check showing up as an inquiry on your report:

www.CreditKarma.com , www.MyFico.com and www.AnnulaCreditreport.com

Also, you may check your credit and credit scores at each bureau individually at:

www.Experian.com , www.Transunion.com , www.Equifax.com   

With these different periodic checks, you should feel confident that your credit is being watched sufficiently and you’re well protected! Contact me if you have more questions regarding your credit!

Purchase-Refinance-Conventional, VA, FHA & Jumbo Loans

Call Me Today 916-722-0395, Email Me Today kathleen@wcmtg.com or visit my website www.kathleenbeck.com   Let’s start you down the road to home ownership now!

 

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Top 5 Easter Egg Hunts In The Sacramento Area

Spring has definitely sprung as trees and flowers are starting to bud. And, despite the chilly days we’ve had the past few weeks, warmer weather is on the way. With the blessings of spring, comes the Easter Bunny, candy and eggs, but where can you find it all? There are plenty of locations to choose from within local and surrounding areas for both children and adults! A quick web search will lead you to many options, but here’s a few to add to your list of possibilities.

Folsom’s Spring Eggstravaganza
March 31, 2018, Vendors and activities start at 8 AM, Egg Hunt at 10 AM
Lembi Community Park; 1328 Riley Street, Folsom
https://www.folsom.ca.us/city_hall/depts/parks/events/events/spring_eggstravaganza.asp
You know it’s a big event when four sports fields are required to separate age groups! With over 25,000 eggs for the picking, this “Eggstravaganza” will be a child’s delight, but adults get to enjoy the day too with a special egg hunt for parents and grandparents. The morning starts with a Pancake Breakfast, with tickets available for purchase on site. There will also be free kiddie carnival games, vendor displays and activities.

Adult Easter Egg Hunt with Cante Ao Vinho
March 31, 2018, 12 – 3 PM
Cante Ao Vinho Tasting Room & Wine Bar; 5250 Front St., Rocklin
https://canteaovinho.com/event/adult-easter-egg-hunt/
If you’re a wine drinker, this is the Easter event for you! $15 tickets include a glass of wine and a wild egg hunt just for adults. Because ham pairs well with a variety of wines, these adult friendly eggs will be a welcome treat with the possibility of $5 bottles of wine and treats… while one lucky person will find a golden egg with an extra treat or two inside!

Kiwanis Club of Citrus Heights Annual Easter Egg Hunt
March 31, 2018, 9 AM – 12 PM
Rusch Community Park; 7301 Antelope Rd., Citrus Heights
https://www.facebook.com/chkiwanis/
The Kiwanis Club is hosting more than just an egg hunt. This free community event will have face painting, tug-o-war, sack races, fishing booths, vendors and a DJ. Always looking to do something positive for the community, the Kiwanis will also be accepting new or gently used shoes for their shoe drive. Those who make a donation will be entered to win a prize. Egg race times are as follows.
4 yrs & under: 9:30 AM and 11AM
5 – 7 yrs: 10 AM
8 – 12 yrs: 10:30 AM
5 – 12 yrs: 11:30 AM

Eggstravaganzoo!
March 31 and April 1, 2018, 10 AM – 3 PM
Sacramento Zoo; 3930 West Land Park Dr., Sacramento
https://www.saczoo.org/visit/event-calendar/eggstravaganzoo/
Up for the challenge of a scavenger hunt? Emerald green emu eggs will be hidden throughout the zoo for you to count as many as you can. Then turn your answer in to Member Services to win a prize. With your zoo admission, there also are egg hunts for children ages 12 and under. Register for your egg hunt as soon as you get to the zoo as space is limited.
2 yrs and under: 10 AM or 12:30 PM
3 – 4 yrs: 10:30 AM or 1 PM
5 – 6 yrs: 11 AM or 1:30 PM
7 – 9 yrs: 11:30 AM or 2 PM
10 – 12 yrs: 12 PM or 2:30 PM
The eggs will be turned in and children will receive a goodie bag for all their hard work. Events will also be taking place across the way at Fairytale Town across the street.

Amador Flower Farm and Nursery
April 1, 2018, Starts at 1 PM
22001 Shenandoah School Rd., Plymouth
http://www.touramador.com/easter-egg-hunt-amador-flower-farm
It’s no April Fool’s joke… this egg hunt is on April 1 and it’s rain or shine! The Amador Flower Farm is a perfect location is you’re looking to stay off the beaten path and don’t mind heading out to play on Easter Sunday. The hunt will take place in the daylily growing grounds so you may want to bring a pair of grubby shoes after all the rain and snow that hit the area lately. Toddlers to children age 13 are welcome to take part in the free egg hunt and the Easter Bunny will be there for lots of photos! Please do not bring pets, but do bring a basket and feel free to tour the gardens, enjoy a picnic or visit the gift shop before you leave.

Purchase-Refinance-Conventional, VA, FHA & Jumbo Loans

Call Me Today 916-722-0395, Email Me Today kathleen@wcmtg.com or visit my website www.kathleenbeck.com Let’s start you down the road to home ownership now!

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Understanding Your Credit Score

The credit score is a tool mortgage lenders and other financial institutions use in determining the financial health of a prospective homebuyer.

The credit score, such as the FICO score is a financial term, and is important when mortgage lenders are pre-approving you and pricing the interest rate for your new mortgage loan.  A FICO score which is short for Fair Isaac & Co, is one of three credit scores mortgage lenders use. A credit score is a snap shot of your credit report on a specific date and time.  Your credit score measures your ability to pay your debts in a timely manner.

In most cases applicants with a higher credit scores are considered better risks and receive better interest rates while individuals with lower credit scores may receive a slightly higher interest mortgage.

Credit Scores and Mortgage Rates

Most credit scores range from 300-850. For example, a credit score of 760 and above indicates a better credit worthiness than a credit score of 679 which suggests the loan may be a little risky and may command a higher interest rate.

Factors Affecting Credit Scores

Your credit score is based on a credit report compiled by one of three licensed credit bureaus in the United States Experian, TransUnion and Equifax called a Residential Credit Report. Due to the differing reports provided by these credit bureaus, one person may have three completely different credit scores.

Although the model used in determining your credit score from your credit report is not made public, Fair Isaac and Company have listed the following factors as having the most bearing on the generation of your credit score:

Payment History

A history of late payments, bankruptcy, foreclosures and other negative actions lead to lower credit scores.

High Credit Balances to Credit Limits

Credit scores consider your existing debt and the available balance in your accounts.  In most cases your credit score will be affective if you carry balances on your credit cards or 30% of the high balance limit.

Length of Credit History

How long your accounts have been created is accounted for when generating a credit score.  This factor rewards an account with a proven history of sustained credit.

Type of Credit

A diversification of different accounts of credit is sometimes rewarded. People who have lines of credit in different types of accounts such as credit cards, retail store cards, consumer finance and mortgage may be a benefit to their credit scores.

Recent Credit Requests

Multiple requests for credit in a short period of time (90 to 120 days) may be considered a risk and thus reduce your credit scores.

In short, your credit report and credit scores serve as representation of what your credit worthiness is to mortgage lenders.  Please let me know if you have any additional questions regarding credit scores.

Call Me Today 916-722-0395, Email Me Today kathleen@wcmtg.com or visit my website www.kathleenbeck.com   Let’s start you down the road to home ownership now!

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Fixed Rate Loan vs. Adjustable Rate Loan

Fixed Rate Mortgages and Adjustable Rate Mortgages (ARM) are two loan options for homeowners and homebuyers. While the growing marketplace offers so many varieties within these two categories of loans, the right selection of the mortgage for your needs can be little difficult. To choose the best option for your new home purchase or refinance, it is good to find out a few details about both these loan options in advance.

Fixed Rate Loans:

The fixed rate loan is a set interest rate that is fixed at the time of loan approval and stays same throughout the lifetime of the loan. Fixed rate loans are generally more stable than adjustable rate loans.  Most people like the fixed rate loan because they know what to expect when it comes to budgeting.  A fixed rate loan is generally 1% to 1.5% higher than the start rate on an adjustable loan.

Advantages:

  • Irrespective of the changes that happen in the broader economy, the payments and rate for fixed-rate loans stays constant.
  • The stability of these loans provides easy budgeting solution to homeowners.
  • The terms and conditions are easier to understand, and they are suitable for both home buyers and refinances.

Disadvantages:

  • If a homeowner wants to lower the interest rate, the fixed rate loan holder needs to refinance.
  • You do not have a lower start rate.
  • Most of the fixed rate loans cannot be customized.

Adjustable Rate Loans:

As the name implies, in this case, the interest rate is adjustable. The initial interest rate of the Adjustable Rate Mortgage (ARM) is generally below the fixed rate.  After the initial, start rate period most ARMs adjust annual on the anniversary of the first payment.  The new adjustable interest rate is set 45 days ahead of that date.  However, there are ARMs that adjust as frequently as every month!

Advantages:

  • It features lower interest rates, so people may qualify to buy larger homes than they otherwise could.
  • The adjustable-rate loans allow borrowers to take advantage of falling interest rates without refinancing.
  • It can help loan borrowers to invest more money with the savings they see on their monthly payment.
  • These mortgages offer a lower start rate for borrowers who move often.

Disadvantages:

  • The payments and interest rates may rise significantly throughout the life of the loan.
  • The terms and conditions involved in the ARM are quite difficult to understand. Sometimes borrowers get trapped by shady loan companies.

Many variables play an essential role in the final decision between the ARM (adjustable rate loan) and fixed rate loan. Please feel free to give me a call with any questions and allow me the opportunity to help you find the perfect loan for your situation!

Call Me Today 916-722-0395, Email Me Today kathleen@wcmtg.com or visit my website www.kathleenbeck.com   Let’s start you down the road to home ownership now!

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When To Talk To A Mortgage Professional

Pre-Approval for Peace of Mind!

Buying a home is the largest purchase most people will ever make.  The question of when to speak to a mortgage professional sometimes doesn’t occur to new home buyers until they find a home they are interested in and then it is too late!

The first step in the house hunting process should be a conversation with me. This is called a Pre-Approval.  I will help you figure out how much of a monthly payment you feel comfortable with and can afford.  I will do this by looking at your income and debt structure, where you currently work and live and how much you have available for a down payment, closing costs and other expenses associated with buying a home.

Once I have reviewed all your loan documentation I will present you with a Pre-Approval Letter you can give your Realtor. The Realtor may call it a “Pre-Qual.”  The letter states you have been PREAPPROVED for a home loan under our BUYER READY PROGRAM.  This puts you in the best position to expedite closing of your loan. Your file has been conditionally approved based upon the review of an acceptable credit report, verified bank statements with sufficient cash to close, a completed loan application, verified employment and/or income as of the date of this letter.

When you find your dream home, having a Pre-Approved Home Loan gives you and your Realtor a certain amount of confidence and a definite edge in the market place.  First it will help your Realtor focus on homes within your budget and your ability to finance.  Secondly it will give a seller the confidence that you are Pre-Approved and serious about buying their home.  Many times, sellers look closely at the Pre-Approval and the lender behind the Pre-Approval when considering multiple offers on their home, after all, you are ready to buy a home.  My website has a Pre-Qualification form you can easily fill out and transmit to me electronically. Call Me Today 916-722-0395, Email Me Today kathleen@wcmtg.com or visit my website www.kathleenbeck.com   Let’s start you down the road to home ownership now!

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How Much Home Can I Afford?

This is a common question asked by people who are thinking about buying a home. Generally, lenders will use the 36% as a general guideline when determining how much home you can afford as a borrower. To figure out how much you can afford, take your monthly income and multiply it by 36%, this will give you an idea of the mortgage you can afford.

For example, if you earn $50,000.00 a year, that is about $4,166.00 a month. With that average household income, you can afford $1,500.00 in total monthly payments, according to the 36% rule.

Key factors in calculating affordability are 1) your monthly income and stable employment for the last two years; 2) available funds to cover your down payment and closing costs; 3) your monthly expenses; 4) your credit profile.

  • Income – Money that you receive on a regular basis, such as your salary or income from investments. Your income helps establish a baseline for what you can afford to pay every month. Most lenders will use a two-year average if your income fluctuates month to month.
  • Funds available – This is the amount of cash you have available to put down and to cover closing costs. You can use your savings, investments or other sources.
  • Debt and expenses – It’s important to take into consideration other monthly obligations you may have, such as credit cards, car payments, student loans, groceries, utilities, insurance, etc.
  • Credit profile – Your credit score and the amount of debt you owe influence a lender’s view of you as a borrower. Those factors will help determine how much money you can borrow and what interest rate you’ll be charged.

Further considerations when buying a home should also include how much of a down payment you will need to secure your loan! Also, it is a good idea to have at least three months total monthly expenses in reserve to cover you in the event of an emergency. For more questions about buying your first home, please call me with any questions!

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3 New Year’s Resolutions For Your Home in 2018

New Year's Resolution Calendar

#1 Streamline Your Stuff

Every year we get a lot more stuff, some stuff is for use personally, and other stuff is for the home. Take this time at the New Year to go room by room, closet by closet, and get rid of the stuff you don’t use or need anymore.
Any clothes that have not been worn since before last New Year can be donated. Clutter and nick knacks that seem to have been a part of the home since before you can remember is probably a good candidate of things that have to go. Head to your favorite store and pick up some new and clutter free storage ideas for those out of control places, such as the shoes at the front door, back packs and brief cases in the front room, remote controls and gaming controls near the tv, and laundry that collects on the floor of all the rooms with humans!
The garage is also a candidate to go through and remove and donate, dispose of or recycle anything that seems to just take up space but gets little or no use anymore. These things may have some kind of emotional value, or “what if I need it” mentality, but once they are gone you will hardly miss that stuff!

#2 Make Your House Safe and Sound

This is something many people just don’t even think about. It’s like changing the batteries in your home smoke detectors when the time changes twice a year. But other parts of your home need attention too!
Be sure to check your dryer vents behind the dryer need to be cleaned out because dryer lint is so combustible. Clean the vent and any ducts you can access. Check your batteries in your radon detector too, wait what? You don’t have a radon detector? This odorless gas is deadly and every home should have one of these along with your smoke detectors!
This is a good time to check that all your vents from the attic are all clear too. Critters can get in there and damage the vents or they become blocked, which means your house cannot breathe and is susceptible to mold. Finally, this could be a good time to test your home for lead or asbestos for homes remodeled or built prior to 1978.

#3 Keep It Clean With A New Plan

Having a solid plan to keep the house clean and clutter free will help you enjoy your home on a daily basis, because who doesn’t like a nice clean home?
First make a schedule for the daily cleaning chores, such as dishes, laundry, wiping down the shower, taking trash out and cleaning up clutter from the bedrooms. Having different family members responsible for these chores will help ensure no one person has to do it all and everyone is invested in the plan.
Next have Weekly chores such as mopping, vacuuming, dusting, garbage day and sweeping and cleaning the entry ways to the house. Anything not needed to be done on a daily basis would be perfect for this plan.
Finally, make a plan for the monthly chores or to dos. Maybe it is clean the closets, take a load to the thrift store, and dust the blinds, house fans and curtains. Walk the house and replace burned out lights, vacuum the furniture and do a clutter walk, to make sure nothing is popping up at those trouble spots!
These three New Year’s Resolutions should make for a happier and cleaner home, adding to everyone’s enjoyment and comfort! Be sure to follow me on Facebook and feel free to call me at (916) 722-0395 with any questions regarding your mortgage or refinancing!

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Interest Rate and APR…What’s The Difference?

An annual percentage rate (APR) reflects the mortgage interest rate plus other charges.

There are many costs associated with taking out a mortgage. These include:

  • The interest rate
  • Points
  • Fees
  • Other charges

The interest rate is the cost you will pay to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan.

An annual percentage rate (APR) is a broader measure of the cost to you of borrowing money, also expressed as a percentage rate. In general, the APR reflects not only the interest rate but also any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.

Why have both?

“The biggest difference between the two is that the interest rate calculates what your actual monthly payment will be,” says Kathleen Beck, Mortgage Lender, “while the APR calculates the total cost of the loan. A homebuyer can use one or both to make comparisons when shopping for loans.”

As an example, a loan with a 4.25% rate will have a lower monthly payment than a loan for 6.5%, assuming both loans are fixed for the same term.  Which means the total cost of the 4.25% APR will be less than the loan with the 6.5% APR.

How long you will stay in your home matters

If you plan on staying in your home for the entire 30 year mortgage, it makes sense to go with the lowest APR because you will end up paying the lowest amount for your house.  But if you know you are not going to be living in that house that long, it could make sense to pay fewer upfront fees and get a higher rate and a higher APR because the total cost will be less over the first few years.

“Because the APR spreads the fees out over the course of the entire loan, you get the most value only if you stay in the home throughout the entire mortgage.” Kathleen says.

The Right Lender is Crucial

Kathleen says “If you are planning on staying in your home for a shorter period of time you need to do the math and figure out your break-even point. A good lender will help you do that, I will help you do that!” You need to know if you are going to lose money by paying for a lower APR, but end up moving sooner than your break-even point!

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Things NOT to do before escrow closes

I am going to write another blog about what to expect at your mortgage closing, but I feel it is equally important to point out the things that you should stay clear of before we even get to the closing, because these things could put the whole mortgage at risk!

These are the things you should not do before you close escrow.

Changing Jobs

Lenders prefer a steady and consistent job history, and your whole mortgage to this point has been based on your current income history. Any changes in your employment at this point such as changing jobs, companies or becoming self-employed could spell disaster to your ability to purchase your home. At the very least, it could put the process on hold while the lender re-evaluates your financial position.

Making Big Purchases

Yes, you are getting ready to move into that new home and you need new furniture or appliances or you want to celebrate with a trip to Cancun, or maybe even want a new car to make your commute from your new home more enjoyable. All of this is definitely a bad idea! Your loan is based on something called “debt to income ratio” and it was calculated based on your current debt. Adding any more debt at this point will change that ratio not in your favor! Even buying these things with a cash reserve you have set aside is a bad idea, because you would have had to disclose your savings during the mortgage process and this was all taken into account when you were approved. So for now, do not make any purchases with any type of credit or cash savings. Wait until you have closed escrow and have the keys to your new home.

Paying Your Bills Late

This should be self explanatory, but you don’t want to be late on your car payments or credit card payments now, when your new home hangs in the balance. Be sure to stay current on all debt before and during the escrow process. Of course, you want to continue to stay current and pay off that debt even after you get the keys to your new house!

Opening/Closing New Credit Card Accounts

This is just a bad idea during your escrow. There is nothing to be gained by having more debt and opening new accounts could impact your credit status. The same is true for closing accounts, even though that may seem counter intuitive; closing accounts during the escrow could affect your credit rating. Now, sometimes lenders will ask you to pay off small debts in order to get your debt to income ration down to an acceptable level, but that is a request the lender will make, otherwise, just keep paying your monthly payments as usual.

Being Unreachable

The escrow process only last about 30 days on average, and during this time, your lender should be able to reach you easily. Don’t travel to remote places where you cannot be reached. Don’t get a new cell phone number, unless you give it to your lender first thing. Don’t take extended vacations, or travel to places you may not be able to get back from in time to close escrow. Many times during the closing there are small or large glitches, and the lender needs your attention right away, Not being available could push back the closing date on your new home.

These are just the big ones, and the ones that could impact you the most. Please feel free to contact me any time if there are questions about your closing. It is better to get the answers ahead of time, rather than dealing with a potential issue during the closing process. I am always available to help make this process easy and get you into your new home!

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